Descending Wedge Pattern:
The chart shows a descending wedge, marked by a narrowing price range between the green support line and red resistance line. This is a bullish reversal pattern.
Price is currently testing the upper red resistance trendline, signaling a potential breakout.
Dark Pool Levels:
Key levels include:
111.76 (BA SW).
110.82 and 109.12 acting as potential support or resistance zones based on price action.
These levels suggest significant institutional activity, making them critical for trade planning.
Support and Resistance:
Support levels:
The wedge’s lower green trendline near 106.28.
Major dark pool support at 104 (BB SW 104).
Resistance levels:
108.07 (Dark Pool Level).
111.76 and 112.00 (Dark Pool and Fibonacci target).
Higher targets at 115.00, 117.50, and 120.00 (Fibonacci extensions).
Trend Analysis:
The price is currently near the 8 EMA and 21 EMA, suggesting consolidation and potential for a breakout.
A break above 108.07 (dark pool level) could trigger bullish momentum.
Trade Idea:
Entry:
Breakout Entry: Enter above 108.07 if confirmed with strong volume.
Pullback Entry: Enter near 106.28, the lower wedge support, for a better risk-to-reward ratio.
Profit Targets:
112.00: First target aligning with Fibonacci and dark pool levels.
115.00: Second target, key Fibonacci extension.
117.50: Third target based on continued bullish momentum.
120.00: Final target for a strong bullish move.
Stop Loss:
Close below 106.00: Invalidates the wedge pattern breakout.
Close below 104.00: Signals bearish continuation, as the price would break significant support.
Risk Management:
Ensure position size aligns with risk tolerance.
Risk-to-reward ratio should be at least 1:3, considering entry at 108.07, stop loss at 106.00, and initial target at 112.00.
Additional Notes:
Volume Confirmation: Look for above-average volume on breakout above the wedge’s resistance line.
Dark Pool Reaction: Monitor price action near dark pool levels (especially 108.07 and 111.76) for reversals or breakouts.
Fibonacci Levels: Higher Fibonacci extensions suggest strong potential upside if the breakout is sustained.
